May 7 (Reuters) - Canada's main stock index rose to a five-week high on Wednesday, led by gains for financial and technology shares, as Wall Street staged a late rally and after the Federal Reserve left interest rates on hold.
The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE), ended up 186.46 points, or 0.8%, at 25,161.18, its highest closing level since April 2.
U.S. stocks also advanced as a report that the Trump administration plans to rescind artificial intelligence chip curbs put in place during the Biden administration boosted chipmakers.
The Fed held rates steady, as expected, but said the risks of higher inflation and unemployment had risen, further clouding the economic outlook as the U.S. central bank grapples with the impact of Trump administration tariff policies.
"We're taking this step ahead on the TSX on the back of banks," said Allan Small, senior investment advisor of the Allan Small Financial Group with iA Private Wealth.
"A lot of people believe that banks will be the number one benefactor of (U.S.) deregulation."
The heavily weighted financials sector rose 0.7%, industrials added 1.3% and technology was up 1.5%.
The materials group, which includes metal mining shares, lost 0.5% as the price of gold gave back some of this week's sharp gains.
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Barrick Mining Corp (ABX.TO), reported a first-quarter profit that beat analysts' estimates, driven by a surge in gold prices that helped offset lower production. Its shares gained 1.2%.
Shares of Suncor Energy Inc (SU.TO), were down 3.3% as oil prices fell. The company reported a first-quarter profit above analysts' expectations, benefiting from greater refinery production and sales volumes.Reporting by Fergal Smith, Sanchayaita Roy and Sukriti Gupta; Editing by Shreya Biswas and Paul Simao
